A Computer Manufacturer Recently Shipped Several Laptops to a Customer

Multiple Choice

A computer manufacturer recently shipped several laptops to a customer (cost: $25,000) and billed the customer $30,000.Which of the following options correctly expresses the accounts that are debited and credited to record this transaction?

A) Debits: Accounts Receivable, Finished-Goods Inventory; credits: Sales Revenue, Cost of
B) Debits: Accounts Receivable, Cost of Goods Sold; credits: Sales Revenue, Finished-Goods
C) Debits: Sales Revenue, Cost of Goods Sold; credits: Accounts Receivable, Finished-Goods
D) Debits: Sales Revenue, Finished-Goods Inventory; credits: Accounts Receivable, Cost of
E) Debits: Accounts Receivable; credits: Finished-Goods Inventory, Profit on Sale.